In the case of partly paid-up
shares, the dividend is payable either on the nominal, called-up or the
paid-up amount of shares, depending on the provisions in this regard
that there may be in the articles of the company. In the absence of any
such provisions, Table A should be applicable. In such a case the amount
of dividend payable will be calculated on the amount paid-up on the
shares, and while doing so, the dates on which the amounts were paid
must be taken into account. Calls paid in advance do not rank for
payment of dividend.
A
company may if so authorised by its articles, pay a dividend in
proportion to the amount paid on each share, where a larger amount is
paid on some shares than on others (Section 93 of the Companies Act,
1956). But where the articles are silent and Table A has been excluded,
the amount of dividend payable will have to be calculated on the nominal
amount of shares.
It
should, however, be noted that according to Clause 88 of Table A
dividends are to be declared and paid according to the amounts paid or
credited as paid on the shares in respect whereof the dividend is paid,
but if and so long as nothing is paid upon any of the shares of the
company, dividends may be declared and paid according to the nominal
amount of the shares.